Loading...
HomeMy WebLinkAbout25691CITY COUNCIL OF THE CITY OF AZUSA AND BOARD OF DIRECTORS OF THE AZUSA UTILITY BOARD NOTICE OF REGULAR AND SPECIAL MEETING NOTICE IS HEREBY GIVEN that a regular meeting of the Board of Directors is to be held as follows: Date: August 27, 2001 Time: 6:30 p.m. Place: Azusa Light & Water 729 N. Azusa Avenue Azusa, CA 91702 The following matters are the business to be transacted and considered by the Board of Directors: Public Participation 11. Consent Calendar 1. Approval of minutes of regular meeting July 23, 2001. 2. Approval of reserve fund levels for Electric and Water Utilities. III. Action Items Resolutions concerning financial matters: (A) Resolution No. UBO 1-02 approving payoff of the La Salle Bank Note. (B) Resolution No. UBO 1-03 approving $5 million for Public Works set-aside. (C) Resolution No. UB01-04 authorizing transfer of return on investment revenue to General Fund. Resolution No. U1301-05 accepting grant of 10' utility easement from Realty Bancorp Equities for fire hydrant lines in the City of Glendora. IV. Staff Report/Communications Monthly billing report Power Resources monthly updates Non -sufficient fund check process Undergrounding of power lines Pg. 2 — Azusa Utility Board Agenda, August 27, 2001 Ordinance No.01-03 as requested by the Board. Utility Board Policy and Rules V. Directors Comments/Discussions. VI. Closed Session None VII. Adjournment CITY COUNCIL OF THE CITY OF AZUSA AND BOARD OF DIRECTORS OF THE AZUSA UTILITY BOARD NOTICE OF REGULAR AND SPECIAL MEETING NOTICE IS HEREBY GIVEN that a regular meeting of the Board of Directors is to be held as follows: Date: August 27, 2001 Time: 6:30 p.m. Place: Azusa Light & Water 729 N. Azusa Avenue Azusa, CA 91702 The following matters are the business to be transacted and considered by the Board of Directors: I. Public Participation H. Consent Calendar 1. Approval of minutes of regular meeting July 23, 2001. 2. Approval of reserve fund levels for Electric and Water Utilities. III. Action Items 1. Resolutions concerning financial matters: (A) Resolution No. UBOI-02 approving payoff of the La Salle Bank Note. (B) Resolution No. UBOI-03 approving $5 million for Public Works set-aside. (C) Resolution No. UBOI-04 authorizing transfer of return on investment revenue to General Fund. 1. Resolution No. UBOI-05 accepting grant of 10' utility easement from Realty Bancorp Equities for fire hydrant lines in the City of Glendora. IV. Staff Report/Communications 1. Monthly billing report 2. Power Resources monthly updates 3. Non -sufficient fund check process 4: Undergrounding of power lines Pg. 2 — Azusa Utility Board Agenda, August 27, 2001 5. Ordinance No.01-03 as requested by the Board. 6. Utility Board Policy and Rules V. Directors Comments/Discussions. VI. Closed Session None VII. Adjournment CITY OFAZUSA CONSENT ITEM MINUTES OF THE SPECIAL CITY COUNCIL MEETING AND REGULAR AZUSA UTILITY BOARD MEETING MONDAY, AUGUST 27, 2001 - 6:30 -P.M. The City Council of the City of Azusa met in Special session jointly with the Azusa Utility Board at the above date and time in the Azusa Light and Water Department Conference Room, located at 729 N. Azusa Avenue, Azusa, California. Mayor Pro -Tem Chagnon called the meeting to order. ROLL CALL PRESENT: COUNCILMEMBERS: STANFORD MADRID ABSENT: COUNCILMEMBERS: NONE ALSO PRESENT: HARDISON, CHAGNON, ROCHA, City Attorney Ferre, Assistant City Manager Person, Utilities Director Hsu, Senior Management Analyst Kalscheuer, Assistant Director Customer Care Vanca, Assistant Director of Resource Management Tang, Utilities Marketing Services Torres, Business Retention/Development Marez, Utilities Information Services Manager Morningstar, City Clerk Mendoza, Deputy City Clerk Toscano. Public Participation Call to Order Roll Call Also Present Pub Part Mr. Art Morales addressed Council/Boardmembers requesting that in the future, copies of A. Morales agenda packet be placed in the Library for public review. He then requested information on comments money generated by Light and Water; money owned, retired debt, etc. Mayor Pro -Tem Chagnon advised that if his questions were not answered at this meeting he should submit the request in writing. Page - i - Utilities Director Hsu recognized Mr. Hugh Gerharz in the audience, as he was the former H. Gerharz & 0 Utilities Director for the City of Azusa. Mr. Hsu also recognized Mr. Richard Torres who assists R. Torres Assistant Director of Resources Management Tang. recognized The CONSENT CALENDAR consisting of Items II -I and 11-2, was approved by motion of Consent Cal. Councilmember Stanford, seconded by Mayor Madrid, and unanimously carried. Approved 1. The minutes of the regular meeting of July 23, 2001, were approved as written I' 2. The reserve fund levels for Electric and Water Utilities were approved. 1, Action Items II Utilities Director Hsu presented each resolution to the City Council and stated the purpose of each and answered questions of Councilmembers. Councilmember Hardison offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CIN OFAZUSA, CALIFORNIA, APPROVING THE USE OF EXCESS LIGHT AND WATER DEPARTMENT RETURN -ON -INVESTMENT REVENUE TO PAYOFF THE LA SALLE BANK NOTE. Moved by Councilmember Hardison, seconded by Councilmember Stanford to waive further reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEMBERS: HARDISON, STANFORD, CHAGNON, ROCHA, MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Councilmember Hardison offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, APPROVING A FIVE MILLION DOLLAR SET ASIDE OF EXCESS LIGHT AND WATER DEPARTMENT RETURN -ON - INVESTMENT REVENUE FOR PUBLIC WORKS PROJECTS Moved by Councilmember Hardison, seconded by Councilmember Stanford to waive further reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEMBERS: HARDISON, STANFORD, CHAGNON, ROCHA, MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Page -2- Min appvd L&W Reserve Levels Action Items J. Hsu Resolutions Res. 01-C88 La Salle Bank Note Payoff Res. 01-C89 5 Mil set aside Public Works Projects Councilmember Hardison offered a Resolution entitled: Res. 01-C90' Authorize A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, AUTHORIZING Transfers TRANSFERS OF EXCESS LIGHTAND WATER DEPARTMENT RETURN -ON -INVESTMENT REVENUE Excess Rtn TO THE GENERAL FUND on Invest Rev to General Moved by Councilmember Hardison, seconded by Councilmember Stanford to waive further Fund reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEMBERS: HARDISON, STANFORD, CHAGNON, ROCHA, MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Councilmember Hardison offered a Resolution entitled: Res. 01-C91 Grant of RESOLUTION OF THE CITY COUNCIL OF THE CITY _OF AZUSA ACCEPTING A CERTAIN GRANT Easement OF EASEMENT AND DIRECTING THE RECORDING THEREOF. Moved by Councilmember Hardison, seconded by Councilmember Stanford to waive further reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEMBERS: HARDISON, STANFORD, CHAGNON, ROCHA, MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Staff Reports/Communications Utilities Director Hsu detailed the monthly billing report which consisted of electric, water, J. Hsu sewer, solid waste, and landscape maintenance assessment billing amounts for July 2001, and Monthly comparison amounts for same month last year. He then answered questions posed by Billing Rpt Councilmembers. Assistant Director of Resource Management Tang presented the Power Resources Division R. Tang Monthly Report to Council which showed a 10.53% reduction in consumption for July 2001 Power Res compared to July 2000. Mr. Tang also presented the Wholesale market trend to the Council Division which showed significant price reduction in cost per megawatt hour from May 2001 to August Monthly Rpt 2001. Mr. Tang presented Power resource budget to Council and explained San Juan hedging strategy and its consequences. Mr. Tang explained that the hedging strategy was based on rising pricing trends earlier in the year which exposed the City to significant financial risk in the event of a prolonged outage at the San Juan Power Plant. The risk assessment included three different financial exposure scenarios and considered the plant's reliability. Mr. Tang answered questions as posed by Councilmembers. Assistant Director of Customer Care Vanca presented to Council a six month pilot program K. Vanca where non -sufficient fund checks will be processed by the bank twice instead of just one time. NSF Check Further, that if the check does not clear after the second time the customer will be charged a Process $20 fee and will have to pay future bills by cash or money order. Ms. Vanca reported that the program will be monitored to see if the number of NSF checks is reduced. Mayor Pro Tem Page -3- Chagnon asked why letters are sent to residents and businesses are called. Ms. Vanca added thAt residents are difficult to contact during the day and make up most of the NSF checks. Businesses, on the other hand, are usually there and more responsive. , Utilities Director Hsu provided a report on the funding that has been set aside for J. Hsu Undergrounding of Power Lines; Mr. Hsu indicated that we will begin with the Montecito-Golf Underground Course area. He stated that each fiscal year we will have funds for undergrounding of power Power Lines lines which may cost as much as five hundred thousand dollars per block. Update Utilities Director Hsu reported that other items were included in agenda package as discussed at the last meeting, namely a copy of the ordinance the Council requested and some draft governance policies staff formulated. Directors' Comments/Discussion Mayor Pro Tem Chagnon initiated discussion about Ordinance No. 01-03 stating that the purpose of forming a Board was to focus on important issues confronting the utility and long term business planning issues. Ms. Chagnon stated that the Board was not formed to address other City Council matters, such as approvals from Human Resources and the Finance Department. Ms. Chagnon further indicated that it was not the intent of the Board to create different types of position titles such as Executive Advisor or Executive Director. Ms. Chagnon stated that the Board should utilize existing staff and have the Utilities Director report to the Board just as Community Development Director Bruckner reports to the Planning Commission. Ms. Chagnon asked City Attorney Ferre if it was necessary for the City Manager to serve as Executive Advisor to the Board as called for by Section 2-413 of the Ordinance. Mr. Ferre indicated that it was not necessary and the code section could be amended. There were additional comments made about the need to create a budget pursuant to Section 2-418. Discussion was held regarding selection of the Chairperson of the Board and that there was a need to clarify the selection method. Councilmember Stanford suggested that it be a person who has developed an expertise in Utility issues. Councilmember Hardison suggested that the five members elect one member of the board annually as the ordinance states. Mayor Madrid was open to options of the Board. The other two Councilmembers favored a rotation process. It was consensus that discussion on this subject be addressed again around March. Councilmember Rocha inquired whether item #6 under Powers & Duties relating to hold, lease, acquire and purchase property in the name of the city will have to go back to Council for final vote and the response was yes. He also requested that Council be alerted when there are training sessions available regarding Utility issues and Utilities Director Hsu responded that he will announce workshops. Mr. Ferre indicated that his office was working on an amendment to the Ordinance to clarify some issues. Mr. Ferre reported that it will be important in the future for the meetings to be noticed as a special meeting of the City Council and a regular meeting of the Utility Board. This will enable the Board to focus on the business of the utility and for the City Council to take action on utility business if necessary. There was general agreement amongst Council/Board members that this joint meeting of City Council and Utility Board be focused on matters pertaining to the Utility and that the City Attorney should proceed with an amendment clarifying the ordinance. J. Hsu Attachments Dis Ord 01-03 Establishing — Utility Board Dis Clarify method for selection of Chair - continued Rocha questions J. Ferre Ord Amend Meeting Notices It was consensus of Councilmembers that the draft Azusa Light and Water Utility Board Governance Page -4- Governance Policies document was tabled until after December. C. Policies table !- Councilmember Hardison requested that agenda packages be on 8 Vz X I I paper and stapled D. Hardison together rather than three -hole punched and placed in a binder. Councilmembers generally Agendas & consented to this. Mr. Hardison also requested a report on the Utility's approach to publicity Publicity and public relations. It was consensus of Councilmembers to adjourn. TIME OF ADJOURNMENT: 8:35 P.M. SECRETARY C Page -5- Adjourn